Traditional power grids were primarily made up of power generators that produced consistent, reliable amounts of energy. Fossil fuel plants, hydroelectric plants, and nuclear plants were the staple forms of power generation in older power grids. The electricity produced was carried on the transmission lines of the power grids at high voltages, subsequently stepped-down to lower distribution voltages by transformers, and further stepped-down when received by the end user. Older power grids of this time only produced enough electricity to meet the demand of the end users and did not receive back any of the electricity or information from the end user.
Due to deregulation of the power industry, requirements for renewable energy sources because of environmental initiatives, and new energy saving technologies, the power grid has become more complex. Renewable energy, such as wind and solar energy, produces more variable quantities of electricity depending on the weather. Also, an increased number of market participants, household produced energy, stored energy, and smart appliances have made the power grid a dynamic system with large amounts of data and factors to take into consideration when operating an efficient, reliable power grid.